Annual meetings can be challenging to schedule. Numerous schedules for board members must be considered when choosing a date. Also, you need to consider your shareholders and unit owners. If they do not come to the annual meeting, you will not have a quorum to conduct business.
BuildingBoard has developed a way to increase the chance you have a quorum at your annual meeting while simplifying board meetings and annual meetings.
Our online meeting platform is an easy, convenient, and cost-effective tool for virtual annual meetings. Your members do not need to download an app or software. Instead, merely email them a link for the annual meeting, and they can view the meeting. They can also participate in the annual meeting, which is a common requirement for virtual annual meetings.
Our platform also makes it easy to cast electronic votes. By providing a convenient, simple way to attend the annual meeting and vote, you increase the chance that you will have enough people to sustain a quorum at your next annual meeting.
A quorum is the minimum number of votes present in person or by proxy required to hold an election or vote on proposals and amendments. If you do not reach a quorum, you need to reschedule the annual meeting. Rescheduling meetings can be costly. In addition, you cannot be sure that you will reach a quorum at the rescheduled meeting.
Holding your annual meeting virtually is the answer to the problem. Your shareholders and property owners may attend from work, home, vacation, or wherever they may be on the day of the annual meeting. They cast their votes electronically through the platform.
The annual meeting is held to conduct business that impacts the entire community. However, these meetings may also provide owners and shareholders the opportunity to voice concerns or issues.
Virginia has a Condominium Act that governs condominium communities in the state. Section 55.1-1949 of the Act states that meetings of unity owners are held according to the organization's instruments, but at least once each year. Meeting notices are required to be sent to unit owners at least 21 days in advance of the meeting date.
Notices are mailed to the unit address unless the owner has provided a different mailing address to the association. Electronic delivery or notices is permitted with consent by the unit owner.
A minimum quorum for association meetings is set in §55.1-1952 of the Act. Unless the bylaws or condominium instruments state otherwise, a quorum is reached when there are enough people present at the beginning of the meeting to cast one-third of the eligible votes. Larger quorum percentages might be set in the bylaws, but the minimum lawful percentage for a quorum is 10 percent.
The votes for each unit may be allocated based on the unit's undivided interest in the common elements pertaining to each unit. Otherwise, the bylaws allocate each unit an equal number of votes. An exception exists for allocating votes to convertible space based on the size of the space. Unless prohibited by the bylaws, votes may be cast at the meeting in person, by proxy, or by absentee ballot. In addition, the executive board may adopt guidelines for voting by electronic means.
Virginia also has a Real Estate Cooperative Act. According to §55.1-2140, a meeting of the association must be held at least once every year. Special meetings may be called as necessary. Meeting notices must be hand-delivered or mailed by United States mail to the mailing address of each unit at least ten days before the scheduled meeting date. Notice may not be sent more than 60 days before a meeting.
Section 55.1-2141 sets a 20 percent quorum for votes if the bylaws do not state otherwise. Votes may be made in person or by proxy.
The Virginia Property Owners' Association Act applies to many homeowners associations (HOAs) throughout the state. Section 55.1-1815(G) requires annual meetings for the association. Meeting notices must be sent to owners at least 14 days before the scheduled meeting date for annual meetings or regularly scheduled meetings. Other meetings require at least seven days’ advance notice.
In most cases, the bylaws dictate the number of votes required for a quorum.
In 2018, Virginia passed legislation amending the Virginia Nonstock Corporation Act. Section 13.1-8442 permits members to participate in meetings by remote communication. The board of directors must authorize remote participation for members. Procedures and guidelines for participation in meetings remotely may be adopted by the board of directors.
Most condominium associations and HOAs are subject to the Nonstock Corporation Act if organized as a non-stock organization.
BuildingBoard is easy to use, convenient, and avoids problems reaching quorums. Schedule your meeting, invite members via email, and conduct the vote on the day of the meeting. Your members vote via their smartphone or computer.
Are you ready to simply your annual meetings? Contact BuildingBoard to learn more about our services and to schedule a demo.
